Wednesday, October 19, 2005

More on rising college costs

From US News and World Report:

Tuition at the average four-year public school is 7.1 percent higher than it was last fall, rising much faster than wages and most other costs. Average earnings have risen only 2.3 percent in the past year, while the overall consumer price index is up 4.7 percent in the last 12 months, largely on spiking energy costs.

Making matters worse for students, public colleges raised their room and board bills by 6.2 percent. The full cost of a year of study, including books, transportation and extras, averages $15,566 for an in-state student now, $926 more than last year.

The price rise for private colleges is slightly less, with tuition up 5.9 percent and other charges rising 5 percent. But the total sticker price is still a hefty $32,070 for a year of study, up $1,621 from last year.

They also report that there has been an increase in aid given out, but it's not enough;

Unfortunately, however, much of the increase in aid is simply keeping pace with the increased number of students enrolling in college. Congress hasn't increased the amount of the Pell grant in years, for example. As a result, the real cost of a degree continues to skyrocket along with the sticker price.

The poor and middle class squeeze continues. But hey, at least the rich got a tax break!


Anonymous Katy said...

Hooray for being broke and for paying off loans until I am 40!

6:20 PM  
Anonymous Anonymous said...

Be careful. The way aid is implemented is in part to blame for rises in tuition. When a group of colleges gets together to decide on the formula for determining who can afford how much per year for tuition, that's a cartel. Under a system like that, they can then raise the base tuition while fine-tuning the allocated aid to insure a full incoming class. The most competitive (and often the most expensive) colleges don't even need to worry about lack of demand and can thus increase tuition with impunity. In other words, base tuition goes up, you pay the same,the feds (read "taxes") subsidize the difference and the college reaps the benifits. Raising aid is not enough.

10:07 AM  

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